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The world’s picture postcard impression of the Caribbean belies what’s happening here. The beautiful waters and unique natural environment that have defined this idyllic group of islands, now threaten its very existence. As the Atlantic Ocean warms and rises, currents shift and the changing atmospheric conditions escalate hurricane intensity. The Caribbean has emerged as a real world case study, where the direct impacts of climate fluctuations are felt first hand. The United Nations considers the region “climate change ground zero”. Mitigating the risks to this vulnerable, hazard-prone region requires a global effort. The window of opportunity is closing fast, and the speed and scale of financing mitigation, adaptation and recovery is now urgent.

Dr. Hyginus Leon
President, Caribbean Development Bank

“The cost of inaction, as far as I’m concerned, is we miss the target of attaining resilient prosperity for all because the impact of climate change is so pervasive and can derail so much everything that we are seeking to do, that without action and not just action, adequate action, intensified and prompt urgent action, we will end up with a situation where the continuing rise in temperatures beyond pre-industrial levels and the effect that will have on not only people, our feedstock, our plants, our soil compositions. If we think in terms of what our lives will look like, what it could look like if we did something and what it would look like if we did nothing, I think that gap is such that it becomes very clear to me the cost is something we should not even begin to fathom.”

The finance challenge here in the Atlantic Basin is arguably the toughest of any part of the globe. The Caribbean Development Bank supports its 19 Borrowing Member Countries on the frontlines, but the road ahead is a complex one. The region is not only facing the critical need to finance and scale up climate action, but also the reality of ongoing disaster recovery funding with high debt levels and other financial constraints.

Dr. Hyginus Leon
President, Caribbean Development Bank

“Unfortunately, we are in a situation where not everybody has adequate funds and in some cases you have adequate funds, but they are not deployed because of the riskiness around those funds. So it has to be a combination of managing risk, de-risking, gaining access, gaining access at the available appropriate price that will allow for those funds to be deployed. But the key always is not just deploying the funds, it’s deploying the funds with a purpose and that purpose has to be clear. So you have to work with time, work with purpose, work with risk. We need to focus on outcomes, not on yesterday’s history.”

As resource challenges continue to impede the region’s efforts to meet the targets set by the Paris Agreement treaty on Climate Change, the CDB is taking the lead by opening up opportunities for increased international collaboration while scaling up its own lending and support for climate action. The institution is focusing on combating climate change through mitigation and adaptation, promoting sustainable energy, building capacity in Caribbean countries, all to enable development and social cohesion and build self-sustaining communities.

Therese Turner-Jones
Director of Projects, Caribbean Development Bank

“I would say that because it’s in CDB’s DNA, every single project has a climate change lens, which means that we’re looking at smart agriculture, smart transportation infrastructure, smart everything that includes climate-proofing whatever we do. Also working with countries to move to renewable energy, issues around how to do that. What kind of integrated resource plan is necessary to come up with a different way of delivering electricity to citizens? So I think it’s all in CDB’s wheelhouse. We’re doing it. Implementation deficits can be resolved by providing more technical cooperation and assistance to help countries do these things in a different way. And in the process of implementing that technical assistance and working along with clients, we can make sure that knowledge really is being transferred and we’re not just holding the hand, but not actually transferring the knowledge.”

The CDB is currently allocating more than 25% of its own resources to climate action, working with partners to mobilise concessional finance through programmes like the Caribbean Action for Resilience Enhancement Programme. Developing a pipeline of projects for co-financing from the Green Climate Fund and implementing grant financing from various sources. Finance innovation also comes in the form of attracting the private sector with ESG-based investing. The bank is also establishing a climate change project preparation fund, designed to secure crucial grant funding for capital project preparation.

Therese Turner-Jones
Director of Projects, Caribbean Development Bank

“Bottom line is, action is needed now because we don’t have time to waste and the planet is heating up. So two ways we’re doing this, first, leveraging our projects with financing from other collaborators and there are many. CDB has EU, Canada, the UK, Green Climate Fund, Adaptation Fund, Climate Investment funds…

all of these partners helping to bring more resources to do the kinds of projects to make sure coastal zone resilience is built up, agriculture is being predicated on the use of seeds that are more resilient to heat and climate change. There’s an effort now to bring more streamlined approach to what’s being called a climate finance architecture.

So think about adaptation fund, climate investment funds, the GEF and the GCF to streamline access to those resources and we’re in that conversation. So I think we’re doing the best we can with what we have and with our partners. So I’m pleased about that.”

As the world grapples with the extensive challenges and the clear necessity to move rapidly towards net zero carbon emissions, it is here in the Caribbean where we can see first-hand the impacts of global warming. This is why the global response should start here.

Dr. Hyginus Leon
President, Caribbean Development Bank

“We have to embrace a mindset that we can, a mindset that we can. We have the ability to do it. What it takes is vision… foresight… perseverance.”